FXFellow Broker Safety
What is worth paying attention to when analysing the FXFellow broker?
Distinguishing and choosing a quality broker instead of a kitchen is not easy. Many people think that it is enough to search through a couple of forums and youtube channels to find the very coveted company to start trading. But not many people think about the fact that most of these “opinion leaders” are ordinary info-gypsies who are sold for a pretty amount of money. Some newbie traders prefer to go all-in and start trading with a vaunted broker, not even realizing that they will feel all the delights of the kitchen only after a while, when they realize that investing large deposits should lead to "successful" trades.
In fact, there is a whole gradation of fraudulent actions in relation to traders, these include:
- fictitious or falsified quotes that are specially tailored to the broker;
- overly “profitable” bonus program, which begins to operate after making a large deposit, only if the conditions are not met, all the money will automatically go back to the broker, and even with additional interest;
- clause in the "User Agreement", which allows the broker to fully manage the client's money.
Above, we described the technology of clearing client pockets on the basis of the FXFellow broker (FH Fell). In order not to fall into such a kitchen, you need to pay special attention to their work activities, as well as check all the documentation and make sure that the license is valid. In addition, if you think that you need to take feedback, you need to find them not only on the broker's portal, but also on other information resources.
WHAT IT IS WORTH PAYING ATTENTION TO WHEN ANALYZING THE FXFELLOW BROKER
If you decide to visit the company's website, you should pay special attention to the footer. For those who don't know, a footer is a small piece of text at the bottom of a page, which is usually in small print and includes a short legal summary. After reading the text, it is worthwhile to come to the conclusion that FXFellow (FH Fell) only performs intermediary functions for traders to enter various world exchanges, however, if a trader encounters any difficulties, then nothing will depend on the broker.
Let's take a simple example. If you didn't know, then many Forex brokers prefer to carry out transactions on the market, but only on paper. How it works: the client replenishes the deposit for a certain amount and starts trading, the broker, in turn, pretends to perform operations, although in reality it is just a fake. Thus, the client's money is in the company's turnover. In addition to everything, the Client may be exposed to falsified quotes, due to which the dealing center will profit from the price difference.
In addition, professional traders understand that Forex trading is associated with high risks, so it often happens that most clients lose their deposits in the early stages of trading. And instead of earning a percentage of the trade, many companies choose to bypass the system, that is, buy when the client sells and serve when the client buys, whereby the amount automatically becomes the property of the broker.
Another common technique is the use of non-standard Forex instruments. To understand this in more detail, take a look on a situation.
Consider the fraud with the substitution of quotes for the specific pair EURDKK: A certain broker on the trading platform, despite the fact that this asset is rigidly fixed by the Danish central bank (nationalbanken.dk) at 7.46038 kroons for 1 euro (blue line on the chart). From the graph, it can be understood that the quotes of fraudulent brokers do not coincide with reality and the Danish krone either falls below 7.30 or grows more than 7.56. And on a large volume, these are huge amounts and a drained deposit of a naive trader!
To summarize, in the top common fraudulent operations of Forex brokers:
- forged documents, licenses, documents, certificates;
- conflict situations that have become sensational events (court proceedings, a large number of negative reviews, complaints from customers)
- Being blacklisted by the Center for Regulation of OTC Financial Instruments and Technologies;
- registration of a dealing center in an offshore zone (in fact, finding a company offshore is not always a bad thing, however, most often it indicates that the company is a kitchen);
- fast capital growth, which includes low commissions, promotions, bonuses, prizes that can only be obtained by investing additional funds.